The Audit Client Manager reported on a summary of how the Council manages the risk of fraud with an aim of prevention, detection and subsequent investigation and reporting of fraud.  She also presented an update to the latest National Fraud Initiative (NFI exercise).

The Audit Client Manager reported that the Council sets high standards for both Members and Officers in the operation of the Council’s affairs and has always dealt with any allegations or suspicions of fraud, bribery and corruption promptly. It has in place policies, procedures and reporting mechanisms to prevent, detect and report on fraud, bribery and corruption. These include the Fraud Strategy and Framework, a Whistleblowing Policy, ICT Code of Conduct and the Anti-Fraud and Bribery Policy.  She stated that Fraud Strategy and Framework 2018/19 to 2020/21 was reviewed and reported to the Audit Committee in January 2019 and continues to underpin the Council’s commitment to prevent all forms of bribery and corruption, whether it be attempted externally or from within.  There have been no new guidance since this date and therefore no changes are proposed to the existing strategy. 

The Audit Client Manager reported that Fraud Strategy and Framework includes reactive and proactive work.  The proactive work was presented in an action plan which had been updated and the progress of which was highlighted by the Audit Client Manager which set out the developments the Council proposes over the medium term future to further improve its resilience to fraud and corruption.  She stated that effective fraud awareness training for Members and Officers is being developed.  A schools anti-fraud toolkit has been drafted with a supporting self-assessment health check.

The Interim Head of Finance and Section 151 Officer informed the Committee of a recent enforcement exercise undertaken by the authority against the fraudulent abuse of the Blue Badge scheme.  The Council had worked in partnership with a specialist team from Portsmouth City Council which resulted in 68 interventions, 15 of which were serious enough for fixed penalties to be issued, with further action under consideration.  Officers provided advice to drivers clarifying the correct use of the scheme, however the Council had warned that abuse of the service will not be tolerated.  The Interim Head of Finance and Section 151 Officer informed the Committee that the misuse of a Blue Badge can be subject to a penalty on conviction of up to £1,000, potentially increasing to more than £5,000 in cases of fraud. 

The Audit Client Manager also reported that the National Fraud Initiative data matching exercises were conducted in 2016 and 2018 and of significance were the results of matches for individuals in receipt of Single Person Discount.  She stated that the matches for the most recent data matching exercise undertaken in 2018 had been released.  To date, 729 matches had been reviewed with a total value of £39,576 being identified as potential fraud or error with £15,522 having been recovered.                   

The Committee requested that an explanation on the reasons for the difference between the amounts over claimed and recovered for those in receipt of Single Person Discount as part of the 2016 exercise.

RESOLVED:   That the Committee noted the report, the measures in place and the work being undertaken to prevent and detect fraud and error.